Thursday, March 13, 2014

Bio-finance: why HFT makes stocks flock like birds...


High-frequency trading is controversial. More than half of all trading now takes place this way, and there's no end in sight to this “arms race” to ever faster speeds. Does it make sense? Is it fair, sensible, or possibly dangerous? New research suggests that HFT does bring benefits as it "synchronizes" the pricing of different related securities, making markets work better for the average investor. Curiously, HFT seems to make assets "flock" together in much the way we see birds flock or fish swim together in schools. Read more at Medium.com.

4 comments:

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  2. Surely, it resembles flocks as high-frequency trading is quantitative and it is characterized by short portfolio holding periods. Since decisions are made by lots of participants and computers which process the information so quickly are involved it resembles highly organized organism. HF trading is risky and controversial so there’s importance to know about instant payday loans Canada. This service can assist in solving any financial problem.

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  3. Great post. Very informative and useful. I hadn't heard of this before. I'll definitely bring that into my professional practice. write my bio for me

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